More jail time for 2 men involved in $1.66M tax fraud

Published: Friday, July 5, 2013 at 5:26 p.m.

Last Modified: Friday, July 5, 2013 at 9:37 p.m.

Two prisoners who helped run a $1.66 million tax fraud scheme from behind bars have been sentenced to additional prison time.

Federal prosecutors say William Scott Folk, 36, and Christopher Jesse Lee, 35, used the names and Social Security numbers of inmates to file false tax returns. They were charged with conspiracy to defraud the government and conspiracy to commit mail fraud.

Both men pleaded guilty in March and will each serve 10 years in prison for their involvement in the conspiracy.

Folk will pay $580,884 in restitution to the Internal Revenue Service and Lee will pay $435,130.

Several other defendants were also charged in the case, including Morriston resident Cora Beard, 68, who pleaded guilty to the same charges as Folk and Lee but also were convicted of filing false claims against the government, theft from the government and aggravated identity theft.

Chief U.S. District Judge M. Casey Rodgers sentenced Beard to two years and nine months in prison and ordered her to pay $580,884 in restitution to the IRS.

Beginning in January 2006, authorities believe the group filed fraudulent tax returns using the names and Social Security numbers of many victims, including inmates housed in the Florida Department of Corrections.

As part of the scheme, Gail Anita Moss, 60, and Beard, provided their home addresses to receive IRS refund checks in the mail. The defendants filed a total of 344 faulty income tax returns, resulting in a total of $1,656,721 in refunds from the U.S. government.

“Filing fraudulent tax returns in the names of other individuals is a significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury, and abuses the system in which the taxpayer public places its trust,” said James D. Robnett, special agent in charge of the Tampa field office.

The case was prosecuted by Assistant U.S. Attorneys Tiffany H. Eggers and Randall J. Hensel.

Moss, a Miami Gardens resident, was sentenced to two years and one month in prison and must pay $156,410 in restitution to the IRS. All four pleaded guilty in March to various conspiracy and fraud charges.

Already serving prison sentences between five and 10 years for their involvement in the case are Mary Blair, Thomas Rabeau, Nikki Knight and Elton Blair. All four pleaded guilty for their roles in the fraudulent income tax scheme after being indicted in January 2012.

“Defrauding the government, abusing the identity of the American citizens and undermining the public’s trust in the system will not be taken lightly by this office,” said U.S. Attorney Pamela Marsh. “We will prosecute these types of criminals with extreme prejudice and the penalties for those convicted will be severe.”

The scheme was uncovered as a result of an investigation between the IRS’ Criminal Investigations unit and the support of the Florida Department of Corrections.

Investigations by the IRS’ Criminal Investigations, previously called the Investigation Unit, led to the 1931 conviction of American gangster Al Capone for income tax evasion and helped solve the 1932 kidnapping of 20-month-old Charles Lindbergh Jr., according to the IRS website.

<p>Two prisoners who helped run a $1.66 million tax fraud scheme from behind bars have been sentenced to additional prison time.</p><p>Federal prosecutors say William Scott Folk, 36, and Christopher Jesse Lee, 35, used the names and Social Security numbers of inmates to file false tax returns. They were charged with conspiracy to defraud the government and conspiracy to commit mail fraud.</p><p>Both men pleaded guilty in March and will each serve 10 years in prison for their involvement in the conspiracy.</p><p>Folk will pay $580,884 in restitution to the Internal Revenue Service and Lee will pay $435,130.</p><p>Several other defendants were also charged in the case, including Morriston resident Cora Beard, 68, who pleaded guilty to the same charges as Folk and Lee but also were convicted of filing false claims against the government, theft from the government and aggravated identity theft.</p><p>Chief U.S. District Judge M. Casey Rodgers sentenced Beard to two years and nine months in prison and ordered her to pay $580,884 in restitution to the IRS.</p><p>Beginning in January 2006, authorities believe the group filed fraudulent tax returns using the names and Social Security numbers of many victims, including inmates housed in the Florida Department of Corrections.</p><p>As part of the scheme, Gail Anita Moss, 60, and Beard, provided their home addresses to receive IRS refund checks in the mail. The defendants filed a total of 344 faulty income tax returns, resulting in a total of $1,656,721 in refunds from the U.S. government.</p><p>“Filing fraudulent tax returns in the names of other individuals is a significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury, and abuses the system in which the taxpayer public places its trust,” said James D. Robnett, special agent in charge of the Tampa field office.</p><p>The case was prosecuted by Assistant U.S. Attorneys Tiffany H. Eggers and Randall J. Hensel. </p><p>Moss, a Miami Gardens resident, was sentenced to two years and one month in prison and must pay $156,410 in restitution to the IRS. All four pleaded guilty in March to various conspiracy and fraud charges.</p><p>Already serving prison sentences between five and 10 years for their involvement in the case are Mary Blair, Thomas Rabeau, Nikki Knight and Elton Blair. All four pleaded guilty for their roles in the fraudulent income tax scheme after being indicted in January 2012.</p><p>“Defrauding the government, abusing the identity of the American citizens and undermining the public's trust in the system will not be taken lightly by this office,” said U.S. Attorney Pamela Marsh. “We will prosecute these types of criminals with extreme prejudice and the penalties for those convicted will be severe.”</p><p>The scheme was uncovered as a result of an investigation between the IRS' Criminal Investigations unit and the support of the Florida Department of Corrections.</p><p>Investigations by the IRS' Criminal Investigations, previously called the Investigation Unit, led to the 1931 conviction of American gangster Al Capone for income tax evasion and helped solve the 1932 kidnapping of 20-month-old Charles Lindbergh Jr., according to the IRS website.</p><p><i>Contact April Warren at 867-4065 or april.warren@ocala.com.</i></p>